Tiếng Việt
中文Short answer: From 01/7/2024, the legal framework governing cooperative bank activities is the Law on Credit Institutions No. 32/2024/QH15 (replacing Law No. 47/2010/QH12). A cooperative bank is a credit institution that is a cooperative; its members include all people’s credit funds and other capital-contributing legal entities (Article 81). Capital mobilization, credit activities, and other activities of cooperative banks are prescribed in Article 125 and implemented under State Bank regulations.
Current legal framework: Law on Credit Institutions 2024
The Law on Credit Institutions No. 32/2024/QH15 took effect on 01/7/2024, replacing Law No. 47/2010/QH12 (as amended in 2017). Citations of the 2010 Law now have only historical reference value.
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Activities of cooperative banks (Article 125)
Under Article 125 of the Law on Credit Institutions 2024, cooperative banks perform the following activities:
- Capital regulation and banking operations for member people’s credit funds;
- Banking and other business activities for organizations and individuals under State Bank regulations — including deposit taking, credit extension, and banking services within the licensed scope;
- Support, inspection, and supervision of member people’s credit funds;
- Internal audit and management of the system safety assurance fund for people’s credit funds;
- Seconding personnel to participate in governance and management of member people’s credit funds when necessary.
Management structure (Article 82)
The management structure of a cooperative bank includes:
- General Meeting of Members — the highest decision-making body;
- Board of Directors;
- Supervisory Board;
- General Director (Director).
In addition, cooperative banks must have internal audit, an internal control system, and undergo independent audit as prescribed by the State Bank Governor.
Order and procedures for capital mobilization and credit extension
Capital mobilization (deposit taking) and credit extension (lending, guarantees, and other forms of credit) activities of cooperative banks are carried out within the scope of the License issued by the State Bank, complying with regulations on limits and safety ratios in banking operations and the State Bank Governor’s specific regulations for cooperative credit institutions. When launching new capital mobilization or credit products, cooperative banks need to review licensing conditions, credit limits for customers, and reporting obligations under current regulations.
Key notes
- Detailed internal order and procedures on capital mobilization, appraisal, and credit extension are prescribed in each cooperative bank’s internal regulations, consistent with the License and State Bank regulations — specific documents should be checked before application.
- People’s credit funds as members are simultaneously subject to the support, inspection, and supervision of the cooperative bank under Article 125.
How ANT Legal can assist
ANT Legal provides legal advice to cooperative credit institutions on licensing, banking operations, compliance with safety limits, and relations with member people’s credit funds. For advice on your specific case, please contact our lawyers at 0966.475.966.
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